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DECISION

Approving the List of priority industries and spearhead industries for the 2007-2010 period, with a vision to 2020, and a number of incentive policies for these industries

THE PRIME MINISTER

Pursuant to the December 25, 2001 Law on Organization of the Government;

At the proposal of the Ministry of Industry in Report No. 5286/BCN-KH of September 20, 2006, and Report No. 7062/TTr-BCN of December 22, 2006,

DECIDES:

Article 1.- To approve the list of priority industries and spearhead industries for the 2007-2010 period, with a vision to 2020 (see enclosed Appendix).

Article 2.- To provide for some policies to encourage the development of priority industries and spearhead industries as follows:

1. For priority industries:

a/ Regarding land: To give priority in allocating adequate land in industrial parks, clusters and points to production projects under new investment, expanded investment or in-depth investment (including projects in combination with relocation of production establishments) which have been approved by competent authorities.

b/ Regarding trade promotion:

- To incorporate priority industries into annual programs on brand building and development;

- To provide financial support (through trade line associations) for enterprises operating in priority industries to formulate international quality management standards;

- To introduce free of charge products of priority industries on the websites of the Industry Ministry and provincial-level Industry Services.

- To display and introduce free of charge products of priority industries in national and local fairs and exhibitions.

c/ Regarding research and development: To provide the maximum budget funds under current regulations for the execution of R & D activities related to key industries, in which:

- The central budget supports:

+ Technology transfer (including trial production with transferred technologies);

+ The establishment and capacity building of scientific and technological agencies (laboratories, testing labs, R &D institutions, etc.);

+ Research into and application of modern technologies and equipment to raise productivity and quality and reduce production costs.

- Local budgets support:

Trial production (of new products; raw materials and auxiliary materials to replace imported ones) in order to perfect new technologies and equipment before they are applied to industrial production.

2. Spearhead industries are entitled to policies applicable to priority industries and partial support from the State (not exceeding 50% of investment capital) for projects on environmental protection in production establishments.

Article 3.- Organization of implementation

1. Responsibilities of ministries and branches:

a/ The Ministry of Industry shall guide, urge and inspect the implementation of this Decision; monitor and propose the Government or the Prime Minister to adjust mechanisms and policies for the development of priority industries and spearhead industries so as to suit realities;

b/ The Ministry of Planning and Investment shall coordinate with the Ministries of Industry; Finance; Trade; Labor, War Invalids and Social Affairs; Science and Technology; Natural Resources and Environment; Agriculture and Rural Development; and Fisheries, the State Bank of Vietnam and concerned ministries and branches in promulgating documents guiding the implementation of specific policies in their respective management domains for the development of priority industries and spearhead industries as stated in their annual and five-year plans; and coordinate with in-charge agencies in settling arising issues at the latter’s request.

2. Responsibilities of provincial-level People's Committees: To make and publicize lists of local priority industries and spearhead industries and incorporate them into their annual and five-year plans for implementation.

Article 4.- This Decision takes effect 15 days after its publication in "CONG BAO."

Article 5.- Ministers, heads of ministerial-level agencies and government-attached agencies, and presidents of provincial/municipal People's Committees shall implement this Decision